Location: Grafton County, NH | Metro: Grafton County, NH
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,810 |
| 1 Bedroom | $1,820 |
| 2 Bedrooms | $2,390 |
| 3 Bedrooms | $3,240 |
| 4 Bedrooms | $3,290 |
| 5 Bedrooms | $3,816 |
| 6 Bedrooms | $4,274 |
| 7 Bedrooms | $4,616 |
| 8 Bedrooms | $4,847 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,820 | $252,100 | 0.72% | D |
| 2BR | $2,390 | $333,310 | 0.72% | D |
| 3BR | $3,240 | $490,113 | 0.66% | D |
| 4BR | $3,290 | $598,884 | 0.55% | F |
U.S. Census Bureau data (2024)
The ZIP code 03766, located in Lebanon, New Hampshire, presents an interesting scenario when viewed from the renter's perspective. The median household income here is $100,881, which might initially seem sufficient to cover the market rate rent of $2,397 per month, known as the ZORI (Zillow Observed Rent Index).
However, comparing the market rate to the Fair Market Rent (FMR), set at $2,650 for the metro area in fiscal year 2026, reveals a different story. This means that even the market rate is slightly below the standard voucher payment, suggesting that many renters could potentially qualify for housing assistance.
With 47.6% of the population renting and a total population of 11,195, there is a significant demand for rental properties. Yet, the affordability gap between the median income and the FMR indicates that many households would struggle to pay market rates without some form of subsidy. This creates a competitive environment for landlords, as they must consider both the financial capacity of their potential tenants and the availability of voucher payments.
The takeaway for landlords is clear: focusing on a strategy that accepts voucher payments can be more beneficial than relying solely on cash-paying tenants. Given that the ZORI is lower than the FMR, accepting vouchers can help landlords secure stable, long-term tenants who might otherwise be unable to afford the rent in this area. This approach not only taps into a reliable source of income but also aligns with the local rental market dynamics where subsidies play a crucial role in making housing affordable.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.